Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT TO THE MEMBERS OF SOLID STONE COMPANY LIMITED
1. Report on the STANDALONE FINANCIAL Statements
1.1 We have audited the accompanying standalone financial statements of SOLID STONE COMPANY LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including other comprehensive income), the statement of changes in Equity and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
2. Managementâs Responsibility for the Standalone Financial Statements.
2.1 The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), 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 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
2.2 This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditorâs Responsibility
3.1 Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the order issued under Section 143 (11) of the Act.
3.2 We conducted our audit of the Standalone 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 financial statements are free from material misstatement.
3.3 An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone 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 financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating 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 Standalone financial statements.
3.4 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
4.1 In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at 31st March, 2018, its profit (financial performance including other comprehensive income), the changes in equity and its cash flows for the year ended on that date.
5. OTHER MATTERS
5.1 The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening balance sheet as at 1stApril 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, have been audited by us.
Our opinion is not modified in respect of these matters.
6. Report on Other Legal and Regulatory Requirements
6.1 As required by the Companies (Auditor''s Report) Order, 2016(âthe Orderâ) issued by the Central Government in terms of Section 143 (11) of the Act, we give in âAnnexure Aâ - a statement on the matters specified in paragraphs 3 and 4 of the Order.
6.2 As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone financial statements - Refer Note 27 (A) to the Standalone financial statements;
ii. The Company has no long-term contracts including derivative contracts for which there were no material foreseeable losses; and
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the company during the year ended 31st March, 2018.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF
SOLID STONE COMPANY LIMITED
i) In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets;
b) As explained to us, the Assets have been physically verified by the management in accordance with a regular programme of verification, which in our opinion is reasonable, considering the size and the nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification;
c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the Company.
ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification.
iii) The company has not granted any loans, secured or unsecured during the year to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the clauses 3(iii) (a), (b) and (c) of the Order are not applicable to the Company.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to investments made during the year.
v) The Company has not accepted any deposits within the meaning of Provisions of Section 73 to 76 of the Act, and the rules framed thereunder from the public.
vi) According to the information and explanations given to us, Central Government has not prescribed maintenance of cost records under section 148 (1) of the Act.
vii) a) The company is regular in depositing undisputed statutory dues, including Income Tax, Sales-Tax, Service Tax, Goods &
Services Tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with appropriate authorities where applicable except there has been some delay in deposits of Provident Fund dues. According to the information and explanations given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at 31st March, 2018 for a period of more than six months from the date they became payable. However dues of Employee State Insurance has been delayed and the extent of the arrears of outstanding dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable are as follows:
Nature of Liability |
Month |
Due Date |
Amount |
Employee State Insurance |
April |
15/05/2017 |
16,407 |
May |
15/06/2017 |
14,965 |
|
June |
15/07/2017 |
16,153 |
|
July |
15/08/2017 |
17,260 |
|
August |
15/09/2017 |
15,071 |
|
September |
15/10/2017 |
15,227 |
However the arrears have been paid prior to the adoption of Accounts.
b) According to the records of the company, the dues outstanding of income-tax, sales-tax, service tax, duty of customs, duty of excise, goods and services tax and value added tax on account of any dispute, are as follows:
Name of the Statute |
Nature of Dues |
Financial Year |
Amount (Rs. in lacs) |
Forum where dispute is pending |
Income Tax |
IT Matter Under Dispute |
2010-11 (A.Y. 2011-12) |
8.25 Lakhs |
Income Tax Commissioner (Appeals) |
Income Tax |
IT Matter Under Dispute |
2013-14 (A.Y. 2014-15) |
1.28 Lakhs |
Income Tax Commissioner (Appeals) |
viii) The company has not defaulted in repayment of its loans or borrowings to banks. The Company does not have any borrowings by way of debentures.
ix) The Company has not raised any moneys by way of Initial public offer or further Public offer (Including debt instruments). Moneys raised by way of Term / Hire Purchase Loan were applied for the purpose for which those are raised.
x) On the basis of our examination and according to the information and explanations given to us, no fraud by the Company or any material fraud on the company by its officers or employees has been noticed or reported during the year, nor have we been informed of any such case by the management.
xi) The managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) The company is not a nidhi Company and accordingly provisions of clause (xii) of Para 3 of the order are not applicable to the Company.
xiii) On the basis of our examination and according to the information and explanations given to us, we report that all the transaction with the related parties are in compliance with Section 177 and 188 of the Act, and the details have been disclosed in the Financial statements in Refer Note 27E as required by the applicable accounting standards.
xiv) The company has not made any preferential allotment or private placement of share or fully or partly paid convertible debentures during the year and accordingly provisions of clause (xiv) of Para 3 of the Order are not applicable to the Company.
xv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into any non-cash transactions with directors or persons connected with the directors. Accordingly, provisions of clause (xv) of Para 3 of the Order are not applicable to the company.
xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act,1934 and accordingly, provisions clause (xvi) of Para 3 of the Order are not applicable to the Company.
âANNEXURE Bâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF SOLID STONE COMPANY LIMITED. 1. Report on the Internal Financial Controls OVER FINANCIAL REPORTING under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SOLID STONE COMPANY LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
2. Managementâs 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. 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 Act.
3. Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by Institute of Chartered accountants of India and the Standards on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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.
4. Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
5. 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.
6. Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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 issued by the Institute of Chartered Accountants of India.
For Ashar & Co.
Chartered Accountants
FRN No. 129159W
Yogesh Ashar
Partner
Mem. No. 046259
Place : Mumbai
Date : 16th May, 2018
Mar 31, 2016
1. We have audited the accompanying standalone financial statements of SOLID STONE COMPANY LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements.
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
4. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating 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.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
7. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor''s Report) Order, 2016(âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act we give in the âAnnexure Aâ - a statement on the matters specified in paragraphs 3 and 4 of the Order.
9. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(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 financial statements - Refer Note 27A to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
I) In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets;
b) As explained to us, the Assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion is reasonable, considering the size and the nature of its business. The frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification;
c) On the basis of our examination and according to the information and explanations given to us, the title deeds of immovable properties are held in the name of the Company.
II) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification;
III) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly the clause 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the order is not applicable to the Company
IV) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made and guarantees given.
V) The Company has not accepted any deposit from public during the year in accordance with the provisions of sections 73 to 76 of the Act and the rules framed thereunder.
VI) According to the information and explanations given to us, Central Government has not prescribed maintenance of cost records under section 148 (1) of the Act.
VII) a) There is no Provident Fund scheme and Employees State Insurance scheme in the company. According to the records of the Company, it has been generally regular in depositing undisputed statutory dues including Income-Tax, Sales-Tax, Custom Duty, Excise Duty and other Statutory Dues with the appropriate authorities, and as on 31st March 2016, except delay in few, according to the information and explanations given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
b) According to the records of the company, the dues outstanding of income-tax, sales-tax, service tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:
Name of the Statute |
Nature of Dues |
Financial Year |
Amount (Rs. in lacs) |
Forum where dispute is pending |
Income Tax |
IT Matter under dispute |
A.Y. 2011-12 (F.Y. 2010-11) |
1.84 |
Commissioner (Appeals) |
Income Tax |
IT Matter under dispute |
A.Y. 2012-13 (F.Y. 2011-12) |
2.64 |
Commissioner (Appeals) |
Income Tax |
IT Matter under dispute |
A.Y. 2013-14 (F.Y. 2012-13) |
1.62 |
Commissioner (Appeals) |
Maharashtra VAT |
VAT Matter under dispute |
2008-2009 |
357.06 |
Deputy Commissioner (Appeals) |
VIII) The company has not defaulted in repayment of its dues to banks. The company does not have any borrowings from Financial Institutions or by way of debentures.
IX) The Company has not raised any moneys by way of Initial public offer or further Public offer (Including debt instruments), during the year. Moneys raised by way of Term / Hire Purchase Loan were applied for the purpose for which those are raised.
X) On the basis of our examination and according to the information and explanations given to us, no fraud by the Company or any fraud on the company by its officers or employees has been noticed or reported during the year, nor have we been informed of any such case by the management.
XI) The managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
XII) The company is not a nidhi Company and accordingly provisions of clause (xii) of Para 3 of the order are not applicable to the Company.
XIIIi) On the basis of our examination and according to the information and explanations given to us, we report that all the transaction with the related parties are in compliance with Section 177 and 188 of the Act, and the details have been disclosed in the Financial statements in Note no. 27E as required by the applicable accounting standards.
XIV) The company has not made any preferential allotment or private placement of share or fully or partly convertible debentures during the year and accordingly provisions of clause (xiv) of Para 3 of the Order are not applicable to the Company.
XV) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly provisions of clause (xv) of Para 3 of the Order are not applicable to the company.
XVI) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act,1934 and accordingly, provisions clause (xvi) of Para 3 of the Order are not applicable to the Company.
ANNEXURE âBâ TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF SOLID STONE COMPANY LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
1. We have audited the internal financial controls over financial reporting of SOLID STONE COMPANY LIMITED(âthe Companyâ) as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
2. 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.
Auditors'' Responsibility
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Ashar & Co
Chartered Accountants
Firm Regn.No.129159W
Yogesh Ashar
Partner
Mem. No. 046259
Place: Mumbai
Date: May 30, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Solid Stone Company Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements.
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the Accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act we give in the annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements Refer Note 27A to the
financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. An amount of Rs, 0.56 Lacs is required to be transferred to the
Investor Education and Protection Fund by the Company.
(Referred to in our report of even date to the members of Solid Stone
Company Limited as at and for the year ended 31st March, 2015).
i) In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets;
b) As explained to us, the Assets have been physically verified by the
management in accordance with a phased programme of verification, which
in our opinion is reasonable, considering the size and the nature of
its business. The frequency of verification is reasonable and no
material discrepancies have been noticed on such physical verification;
ii) In respect of its inventories:
a) The inventory has been physically verified by the management during
the year. In our opinion, the frequency of verification is reasonable.
As regards materials lying with third parties, confirmations have been
obtained;
b) The procedures of physical verification of inventory followed by the
management are, in our opinion, reasonable and adequate in relation to
the size of the company and nature of its business;
c) The company is maintaining proper records of inventory. As informed,
no material discrepancies were noticed on such physical verification.
iii) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act. Accordingly the clauses 3(iii) (a) & (b)
of the Order are not applicable;
iv) In our opinion there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventories, fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in internal control system, in respect
of these areas.
v) The Company has not accepted any deposit from public. We are
informed by the management that 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.
vi) We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148 (1) of the Act, and are
of the opinion that prima facie, the prescribed accounts and records
have been made and maintained.
vii) a) There is no Provident Fund scheme and Employees State Insurance
scheme in the company. According to the records of the company, it has
been generally regular in depositing undisputed statutory dues
including Income- Tax, Sales-Tax, Custom Duty, Excise Duty and other
Statutory Dues with the appropriate authorities, and as on 31st March
2015, except delay in few cases. According to the information and
explanations given to us, there are no undisputed amounts payable in
respect of such statutory dues which have remained outstanding as at
31st March, 2015 for a period of more than six months from the date
they became payable.
b) According to the information and explanations given to us, the
following dues have not been deposited by the Company on account of
disputes
Name of
the Statute Nature of Dues Financial
Year Amount
(Rs, in lacs) Forum where
dispute is
pending
Income Tax IT Matter
under A.Y. 2009-10 1.19 Income Tax
Appellate
Tribunal
dispute (F.Y. 2008-09) Mumbai Bench
Income Tax IT Matter
under A.Y. 2011-12 1.84 Commissioner
dispute (F.Y. 2010-11) (Appeals)
Income Tax IT Matter
under A.Y. 2012-13 2.64 Commissioner
dispute (F.Y. 2011-12) (Appeals)
Mahara
shtra VAT VAT Matter 2008-2009 357.06 Deputy
Commissioner
under
dispute (Appeals)
c) An amount of Rs, 0.56 Lacs (P. Year Nil) to the Investor Education
and Protection Fund in accordance with the provisions of the Companies
Act, 1956 during the year is required to be transferred by the Company.
viii) There are no accumulated losses of the Company as on 31st March,
2015. The Company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
ix) The company has not defaulted in repayment of its dues to banks.
The company does not have any borrowings from Financial Institutions or
by way of debentures.
x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
xi) The Company has applied funds from term loans raised during the
year only for the purpose for which those term loans were raised.
xii) 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 Ashar & Co
Chartered Accountants
(Firm Regn. No. 129159W)
(Yogesh Ashar)
Partner
Mem. No. 046259
Place : Mumbai
Date : 30th May, 2015
Mar 31, 2014
We have audited the accompanying Financial Statements of Solid Stone
Company Limited (''the company'') which comprise the Balance Sheet as at
March, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and the Explanatory Information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (''the act''). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required by the Act 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 2014;
b) in the case of the statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956 (the ''Act'')
we give in the annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e) On the basis of written representations received from the Directors
as on 31st March 2014 and taken on record by the Board of Directors and
on the basis of examination and records of the company, we report and
certify that none of the Directors is disqualified as on 31 March, 2014
from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956 on the said
date;
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in our report of even date to the members of SOLID STONE
COMPANY LIMITED as at and for the year ended 31st March, 2014).
i) In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets;
b) As explained to us, the assets have been physically verified by the
management, which in our opinion is reasonable, considering the size
and the nature of its business. The frequency of verification is
reasonable and discrepancies noticed on such physical verification have
been properly dealt with in the books of account;
c) The fixed assets disposed off during the year, in our opinion do not
constitute a substantial part of its Fixed Assets of the Company so as
to affect it as a going concern.
ii) In respect of its inventories:
a) The inventory has been physically verified by the management during
the year. In our opinion, the frequency of verification is reasonable;
b) The procedures of physical verification of inventory followed by the
management are, in our opinion, reasonable and adequate in relation to
the size of the company and nature of its business;
c) The company is maintaining proper records of inventory. As informed,
no material discrepancies were noticed on such physical verification.
iii) a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly the clauses
4(iii) (b) to (d) of the Order are not applicable;
b) The company has taken unsecured loans from 2 parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year and the year end balance of
loans taken from such parties were Rs. 2,12,15,000/- and Rs.
1,38,70,000/- respectively.
c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions are not
prima facie prejudicial to the interest of the company.
d) The principal in respect of the said loans were regular. There is no
interest payment for the said loans.
iv) In our opinion there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventories, fixed assets and for
the sale of goods and services.
However there is no formal Internal Audit being done by the company.
During the course of our audit, no major weakness has been noticed in
internal control system, in respect of these areas.
v) a) Based on the audit procedure applied by us and according to the
information, explanations and representation given to us, we are of the
opinion that particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
register maintained under that section have been so entered.
b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
exceeding the value of Rs. 5 lakhs in respect of each party, the
transactions have been made at rates which are, prima facie, reasonable
having regard to the prevailing market rates at the relevant time,
where comparable market rates exists.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public
within the meaning of section 58 A and 58 AA of the Companies Act, 1956
and Rules framed there under.
vii) In our opinion and according to the information and explanation
given to us, the internal control procedures are adequate considering
the size and nature of business. However the Company does not have a
formal internal audit system.
viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1)(d) of the Companies Act, 1956, for the products of
the Company.
ix) (a) There is no Provident Fund scheme and Employees State Insurance
scheme in the company. According to the records of the company, it has
been generally regular in depositing undisputed statutory dues
including Investor Education and Protection Fund, Income-Tax,
Sales-Tax, Custom Duty, Excise Duty and other Statutory Dues with the
appropriate authorities, and as on 31st March 2014, except delay in few
cases. According to the information and explanations given to us, there
are no undisputed amounts payable in respect of such statutory dues
which have remained outstanding as at 31st March, 2014 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
following dues have not been deposited by the Company on account of
disputes
Amount (Rs.in lacs)
Name of the Statute Nature of Dues Financial Year
Income Tax IT Matter under A.Y. 2009-10
dispute (F.Y.2008-09)
Income Tax IT Matter under A.Y. 2011-12
dispute (F.Y.2010-11)
Amount (Rs.in lacs)
Name of the Statute Forum where dispute is pending
Income Tax Income Tax Appellate Tribunal
Mumbai Bench
Income Tax Commissioner
(Appeals)
x) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses both in the current
financial year and immediately preceding financial year.
xi) The company has not defaulted in repayment of its dues to banks.
The company does not have any borrowings from financial institutions or
by way of debentures.
xii) The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii) The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
company.
xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures or
other investments.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi) On the basis of the records examined by us we have to state that,
the company has, prima facie, applied the Term / Hire Purchase loans
for the purposes for which they were obtained. The company does not
have any other term loans.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long-term
investments.
xviii) The company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under section 301 of the companies Act, 1956.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by way of public issue during
the year.
xxi) 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 Ashar & Co
Chartered Accountants
Firm Regn.No.129159W
Sd/-
Yogesh Ashar
Partner
Mem.No.046259
Mumbai, Dated: May 29th, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying Financial Statements of Solid Stone
Company Limited (''the company'') which comprise the Balance Sheet as at
March, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and the Explanatory Information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (''the Act''). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required by the Act 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 for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956 (the ''Act'')
we give in the annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e) On the basis of written representations received from the Directors
as on 31st March 2013 and taken on record by the Board of Directors and
on the basis of examination and records of the company, we report and
certify that none of the Directors is disqualified as on 31 March, 2013
from being appointed as a Director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956 on the said
date;
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in our report of even date to the members of SOLID STONE
COMPANY LIMITED as at and for the year ended 31st March, 2013).
i) In respect of its Fixed Assets:
a) The company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets;
b) As explained to us, the assets have been physically verified by the
management, which in our opinion is reasonable, considering the size
and the nature of its business. The frequency of verification is
reasonable and discrepancies noticed on such physical verification have
been properly dealt with in the books of account;
c) The fixed assets disposed off during the year, in our opinion do not
constitute a substantial part of its Fixed Assets of the Company so as
to affect it as a going concern.
ii) In respect of its inventories:
a) The inventory has been physically verified by the management during
the year. In our opinion, the frequency of verification is reasonable;
b) The procedures of physical verification of inventory followed by the
management are, in our opinion, reasonable and adequate in relation to
the size of the company and nature of its business;
c) The company is maintaining proper records of inventory. As informed,
no material discrepancies were noticed on such physical verification.
iii) a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly the clauses
4(iii) (b) to (d) of the Order are not applicable;
b) The company has taken unsecured loans from 2 parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year and the year end balance of
loans taken from such parties were Rs. 50,00,000/- and Rs. 43,00,000/-
respectively.
c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions are not
prima facie prejudicial to the interest of the company.
d) The principal in respect of the said loans were regular. There is no
interest payment for the said loans.
iv) In our opinion there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventories, fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in internal control system, in respect
of these areas.
v) a) Based on the audit procedure applied by us and according to the
information, explanations and representation given to us, we are of the
opinion that particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 that need to be entered in the
register maintained under that section have been so entered.
b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
exceeding the value of Rs.5 lakhs in respect of each party, the
transactions have been made at rates which are, prima facie, reasonable
having regard to the prevailing market rates at the relevant time,
where comparable market rates exists.
vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public
within the meaning of section 58 A and 58 AA of the Companies Act, 1956
and Rules framed there under.
vii) In our opinion and according to the information and explanation
given to us, the internal control procedures are adequate considering
the size and nature of business. However the Company does not have a
formal internal audit system.
viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1)(d) of the Companies Act, 1956, for the products of
the Company.
ix) (a) There is no Provident Fund scheme and Employees State Insurance
scheme in the company. According to the records of the company, it has
been generally regular in depositing undisputed statutory dues
including Investor Education and Protection Fund, Income-Tax,
Sales-Tax, Custom Duty, Excise Duty and other Statutory Dues with the
appropriate authorities, and as on 31st March 2013, except delay in few
cases. According to the information and explanations given to us, there
are no undisputed amounts payable in respect of such statutory dues
which have remained outstanding as at 31st March, 2013 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, the
following dues have not been deposited by the Company on account of
disputes
Name of the Statute Nature of Dues Financial Year
Income Tax IT Matter under A.Y. 2009-10
dispute (F.Y. 2008-09)
Name of the Statute Amount (Rs.in Forum where dispute is pending
lacs)
Income Tax 1.19 Income Tax Appellate Tribunal
Mumbai Bench
x) The company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both in the financial
year under report and in the immediately preceding financial year.
xi) The company has not defaulted in repayment of its dues to banks.
The company does not have any borrowings from financial institutions or
by way of debentures.
xii) The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
xiii) The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
company.
xiv) According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures or
other investments except for investments in mutual funds, where the
company has maintained proper records, timely entries have been made
and the investments are held in the name of the company.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi) On the basis of the records examined by us we have to state that,
the company has, prima facie, applied the Term / Hire Purchase loans
for the purposes for which they were obtained. The company does not
have any other term loans.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long-term
investments.
xviii)The company has not made any preferential allotment of shares
during the year to parties and companies covered in the register
maintained under section 301 of the companies Act, 1956.
xix) The company has not issued any debentures during the year.
xx) The company has not raised any money by way of public issue during
the year.
xxi) 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 Ashar & Co
Chartered Accountants
Firm Regn.No.129159W
Sd/-
Yogesh Ashar
Partner
Mem.No.046259
Mumbai, Dated: May 27, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of SOLID STONE COMPANY
LIMITED as of 31st March,2012 and also the Profit and Loss Account of
the Company for the year ended on that date annexed thereto and the
Cash Flow Statement for the year ended on that date. 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.
1) We conducted our audit in accordance with the generally accepted
auditing standards 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.
2) As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government in terms of section 227(4A) of the Companies
Act., 1956 and on the basis of such checks as we considered appropriate
and according to the information and explanations given to us, we set
out in the annexure a statement on the matters specified in paragraphs
4 and 5 of the said order.
3) Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company as far as appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the above books of
account;
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow statement dealt with by this report comply with the
Accounting Standards as referred to in sub-section (3C) of section 211
of the Companies Act, 1956, to the extent applicable;
e) On the basis of written representation received from the Directors
and taken on record by the Board of Directors, none of the Directors is
disqualified as on 31st March, 2012 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
explanations given to us, the said accounts, read together with the
notes thereon and attached thereto, give the information required by
the Companies Act., 1956 in the manner so required and give a true and
fair view in conformity with the generally accepted accounting
principles accepted in India:
(i) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) In the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORSH' REPORT
(Referred to in paragraph 3 of our report of even date)
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that:-
i. (a) The Company has generally maintained proper records showing
full particulars, including quantitative details
and situation of fixed assets;
(b) These fixed assets have been physically verified by the management
at reasonable intervals. No material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion do
not constitute a substantial part of its fixed assets of the Company so
as to affect it as a going concern.
ii. (a) As explained to us, the inventories has been physically
verified by the management during the year. In our
opinion the frequency of verification is reasonable.
(b) The procedures explained to us, which are followed by the
management for physical verification of inventories, are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
(c) In our opinion, the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. (a) According to the information and explanations given to us and
as per the records examined by us, the
company has not granted any loans, secured or unsecured loan to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly the clause
4(ii) (b) to (d) of the Order are not applicable.
(b) According to the information and explanations given to us and as
per the records examined by us, the company had repaid a loan from a
party covered in the register maintained u/s. 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs.15.00 lakhs
and the year end balance is Rs.NIL.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima facie prejudicial to interest of the company.
(d) The principal payment of said loans were regular. There is no
interest payment for the same.
iv. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control had come to our notice.
v. (a) On the basis of the audit procedures performed by us, and
according to the information, explanations and
representations given to us, we are of the opinion that, the
transactions in which directors were interested, and which were
required 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, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of Rupees Five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at that time.
vi. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956
and Rules framed there under.
vii. In our opinion and according to the information and explanation
given to us, the internal control procedures are adequate considering
the size and nature of its business. However, the Company does not have
a formal internal audit system.
viii. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1)(d) of the Companies Act, 1956, for the products of
the Company.
ix. (a) There is no Provident Fund scheme and Employees State
Insurance scheme in the company. According to
the records of the company, it has been generally regular in depositing
undisputed statutory dues including Investor Education and Protection
Fund, Income-Tax, Sales-Tax, Custom Duty, Excise Duty and other
Statutory Dues with the appropriate authorities, and as on 31st March
2012, except delay in few cases but the same has been discharged prior
to the date of the report.
(b) According to the information and explanations given to us, the
following dues have not been deposited by the Company on account of
disputes
Name of the Statute Nature of Dues Financial Year Amount (Rs.in lacs)
Forum where dispute is pending
Income Tax IT Matter under A.Y. 2009-10 1.19 Commissioner Appeals
dispute (F.Y. 2008-09)
x. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both, in the financial
year under report and in the immediately preceding financial year.
xi. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or Banks.
xii. As explained to us, the company has not granted any Loans or
Advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
company.
xiv. According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments.
xv. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi. On the basis of records examined by us, we have to state that, the
company has prima facie, applied the Hire Purchase loans for the
purpose for which they were obtained. The company does not have any
other Term Loans.
xvii. According to the information and explanations given to us, and
on an overall examination of the balance sheet of the company, we
report that no funds raised on short-term basis have been used for long
term investment.
xviii.According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
company has not issued any debentures during the year.
xx. According to the information and explanations given to us, the
company has not raised any money by public issue during the year.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For Ashar & Co
Chartered Accountants
(ICAI Regn.No.129159W)
Yogesh Ashar
Partner
(Mem.No.046259)
Place: Mumbai
Date : August 29, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of SOLID STONE COMPANY
LIMITED as of 31st March,2011 and also the Profit and Loss Account of
the Company for the year ended on that date annexed thereto and the
Cash Flow Statement for the year ended on that date. 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.
1) We conducted our audit in accordance with the generally accepted
auditing standards 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.
2) As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government in terms of section 227(4A) of the Companies
Act., 1956 and on the basis of such checks as we considered appropriate
and according to the information and explanations given to us, we set
out in the annexure a statement on the matters specified in paragraphs
4 and 5 of the said order.
3) Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit:
b) In our opinion, proper books of account as required by law have been
kept by the Company as far as appears from our examination of those
books:
c) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the above books of
account.
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow statement dealt with by this report comply with the
Accounting Standards as referred to in sub-section (3C) of section 211
of the Companies Act, 1956, to the extent applicable.
e) On the basis of written representation received from the Directors
and taken on record by the Board of Directors, none of the Directors 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
explanations given to us, the said accounts, read together with the
notes thereon and attached thereto, give the information required by
the Companies Act., 1956 in the manner so required and give a true and
fair view in conformity with the generally accepted accounting
principles accepted in India:
(i) In the case of Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2011;
(ii) In the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
(iii) In the case of Cash Fiow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 of our
report of even date)
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that :-
i. (a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) These fixed assets have been physically verified by the management
at reasonable intervals. No material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion do
not constitute a substantial part of its fixed assets of the Company so
as to affect it as a going concern.
ii. (a) As explained to us, the inventories has been physically
verified by the management during the year. In our opinion the
frequency of verification is reasonable.
(b) The procedures explained to us, which are followed by the
management for physical verification of inventories, are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
(c) In our opinion, the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. (a) According to the information and explanations given to us and
as per the records examined by us, the company has not granted any
loans, secured or unsecured loan to companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly the clause 4(ii) (b) to (d) of the Order are not
applicable.
(b) By virtue of amalgamation of Granitexx Stones and Mosaics Private
Limited with the company with effect from 1st October, 2007, unsecured
loans taken by the erstwhile company were taken over by the company, of
which unsecured loans from 6 parties are covered in the Register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs.9.59 lakhs and the year end
balance is Rs.NIL. No fresh loans have been taken by the company from
the parties covered in the Register maintained under section 301 of the
Companies Act, 1956.
(c) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima facie prejudicial to interest of the company.
(d) The principal payment of said loans were regular. There is no
interest payment for the same.
iv. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control, had come to our notice.
v. (a) On the basis of the audit procedures performed by us, and
according to the information, explanations and representations given to
us, we are of the opinion that, the transactions in which directors
were interested, and which were required 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, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of Rupees Five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at that time.
vi. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956
and Rules framed there under.
vii. In our opinion and according to the information and explanation
given to us, the internal control procedures are adequate considering
the size and nature of its business. However, the Company does not have
a formal internal audit system.
viii. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1 )(d) of the Companies Act, 1956, for the products
of the Company.
ix. (a) There is no Provident Fund scheme and Employees State Insurance
scheme in the company. According to the records of the company, it has
been generally regular in depositing undisputed statutory dues
including Investor Education and Protection Fund, Income-Tax,
Sales-Tax, Custom Duty, Excise Duty and other Statutory Dues with the
appropriate authorities, and as on 31st March 2011, there are no
undisputed dues outstanding for more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales tax, Income Tax, Custom duty, Service Tax, Excise
duty and Cess that have not been deposited on account of any dispute.
x. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both, in the financial
year under report and in the immediately preceding financial year.
xi. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or Banks.
xii. As explained to us, the company has not granted any Loans or
Advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
company.
xiv. According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments.
xv. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi. On the basis of records examined by us, we have to state that, the
company has prima facie, applied the Hire Purchase loans for the
purpose for which they were obtained. The company does not have any
other Term Loans.
xvii. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long term
investment.
xviii.According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
company has not issued any debentures during the year.
xx. According to the information and explanations given to us, the
company has not raised any money by public issue during the year.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For Ashar & Co
Chartered Accountants
(ICAI Regn.No.129159W)
Yogesh Ashar
Partner
(Mem.No.046259)
Place: Mumbai
Date : August 27, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of SOLID STONE COMPANY
LIMITED as of 31st March,2010 and also the Profit and loss Account of
the Company for the year ended on that date annexed thereto and the
Cash Flow Statement for the year ended on that date. 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.
1) 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 from 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.
2) As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government in terms of section 227(4A) of the Companies
Act., 1956 and on the basis of such checks as we considered appropriate
and according to the information and explanations given to us, we set
out in the annexure a statement on the matters specified in paragraphs
4 and 5 of the said order.
3) Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit:
b) In our opinion, proper books of account as required by law have been
kept by the Company as far as appears from our examination of those
books:
c) The Balance Sheet and the Profit and Loss Account dealt with by this
report are in agreement with the above books of account.
d) In our opinion, the Profit and Loss Account and the Balance Sheet
dealt with by this report comply with the Accounting Standards as
referred to in sub-section (3C) of section 211 of the Companies Act,
1956, to the extent applicable.
e) On the basis of written representation received from the Directors
and taken on record by the Board of Directors, none of the Directors is
disqualified as on 31st March, 2010 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
explanations given to us, the said accounts, read together with the
notes thereon and attached thereto, give the information required by
the Companies Act., 1956 in the manner so required and give a true and
fair view in conformity with the generally accepted accounting
principles:
(i) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) In the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that :- i.
(a) The Company has generally maintained proper records showing
particulars, including quantitative details and situation of fixed
assets;
(b) These fixed assets have been physically verified by the management
at reasonable intervals. No material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed off a substantial
part of its fixed assets so as to affect it as a going concern.
ii. (a) As explained to us, the inventory has been physically verified
by the management during the year. In our opinion the frequency of
verification is reasonable.
(b) The procedures explained to us, which are followed by the
management for physical verification of inventories, are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
(c) In our opinion, the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. (a) According to the information and explanations given to us and
as per the records examined by us, the company had granted unsecured
loan to one of its subsidiaries amounting to Rs.4.15 lakhs, which has
been received back in the year under review. The maximum balance
outstanding during the year was Rs.4.15 lakhs. In our opinion, the
terms and conditions were not prima facie prejudicial to the interest
of the company.
(b) By virtue of amalgamation of Granitexx Stones and Mosaics Private
Limited with the company with effect from 1st October, 2007, unsecured
loans taken by the erstwhile company were taken over by the company, of
which unsecured loans from 5 parties are covered in the Register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs.8.95 lakhs and the year end
balance is Rs.8.95 lakhs. No fresh loans have been taken by the company
from the parties covered in the Register maintained under section 301
of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of goods. During the course of our previous assessment, no major
weakness in internal control, had come to our notice.
v. (a) On the basis of the audit procedures performed by us, and
according to the information, explanations and representations given to
us, we are of the opinion that, the transactions in which directors
were interested, and which were required 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, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of rupees five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at that time.
vi. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
during the year, nor has accepted any such deposits in the past.
vii. In our opinion and according to the information and explanation
given to us, company has an internal audit system commensurate with the
size and nature of its business.
viii. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1)(d) of the Companies Act, 1956, for the products of
the Company.
ix. There is no Provident Fund scheme and Employees State Insurance
scheme in the company. According to the records of the company, it has
been generally regular in depositing undisputed statutory dues
including Investor Education and Protection Fund, Income-Tax,
Sales-Tax, Custom Duty, Excise Duty and other Statutory Dues with the
appropriate authorities, and as on 31st March 2010, there are no
undisputed dues outstanding for more than six months from the date they
became payable.
x. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses, both, in the financial
year under report and in the immediately preceding financial year.
xi. On the basis of the records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or Banks.
xii. As explained to us, the company has not granted any Loans or
Advances on the basis of security by way of pledge of shares,
debentures or any other securities.
xiii. The requirement of this clause is not applicable, as the company
is not a chit fund company.
xiv. The requirement of this clause is not applicable, as the company
is not dealing or trading in shares, securities, debentures and other
investments.
xv. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi. The term loans have been applied for the purpose for which they
were raised.
xvii. According to the information and explanations given to us, and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long term
investment or vice versa.
xviii. According to the information and explanations given to us, 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.
xix. According to the information and explanations given to us, the
company has not issued any debentures during the year.
xx. According to the information and explanations given to us, the
company has not raised any money by public issue during the year.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For K.PODDAR & ASSOCIATES
CHARTERED ACCOUNTANTS
(ICAI Regn.No.107946W)
KISHORE PODDAR
Proprietor
(Mem.No.039599)
PLACE : MUMBAI
DATE : 27th AUGUST, 2010
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