Mar 31, 2018
Report on the Ind As Financial Statements
We have audited the accompanying Ind As financial statements of SPL INDUSTRIES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind As financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind As financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.
(2) As required by Section 143(3) of the Act, based on our audit 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 statement of Other Comprehensive Income, the cash flow Statement and statement of Changes in Equity 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 read with Rule 7 of the Companies (Accounts) Rules, 2014, Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 Annexure B.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements.
(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
(iii) As per information and explanation given to us no amount is required to be transferred, to the Investor Education and Protection Fund by the Company
Other Matter:
The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 prepared in accordance with Ind AS, included in these Ind AS financial statements,.
Annexure - A to the Independent Auditorâs Report
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of SPL Industries Limited of even date)
I. In respect of the Companyâs fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of the immovable properties are held in the name of the company.
II. In our opinion, the inventories have been physically verified during the year by the management at reasonable intervals and as explained to us no material discrepancies were noticed on physical verification.
III. According to the information and explanations given to us, the Company has not granted any unsecured loans to bodies corporate, covered in the register maintained under section 189 of the Act.
Accordingly, the provisions of clause 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 not given loans, guarantees and security.
V. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of section 73 to 76 of the Act.
VI. According to information and explanations given to us, the maintenance of cost records has not been specified by the Central Government under section 148(1) of the Companies Act, 2013 for the business activities carried out by the Company. Thus reporting under clause 3(vi) of the order is not applicable to the Company.
VII. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as at March 31, 2018 on account of dispute are given below:
Nature of the Statue |
Nature of dues |
Forum where dispute is pending |
Period to which the amount relates |
Amount Rs.in Lakhs |
Income Tax |
Regular demand |
ITAT |
AY 2005-2006 |
50.56 |
Income Tax |
Penalty |
CIT (A) |
AY 2010-2011 |
11.44 |
Employees Provident Fund |
Demand |
Chandigarh High court |
AY 2006-2007 |
6.65 |
VIII. According to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and Government and dues to debenture holders.
IX. According to the information and explanations given to us, monies raised by way of debt instruments during the year have been applied by the Company for the purposes for which they were raised.
X. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
XI. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration 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 hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
XIII. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
XIV. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
XV. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 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.
Annexure - B to the Independent Auditorâs Report
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of SPL Industries Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SPL INDUSTRIES 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.
Managementâs Responsibility for Internal Financial Controls
The Board of Directors of the Company 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, 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SINGHI CHUGH & KUMAR
CHARTERED ACCOUNTANTS
FRN : 013613N
Place: New Delhi Harsh Kumar
Date: May 29, 2018 Partner
M.No. 088123
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF SPL INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of SPL INDUSTRIES 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.
Managementâs Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give 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 financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 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 Annexure A, 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 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.
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, and as required on long-term contracts including derivative contracts.
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company, however, there is no amount which is required to be transferred.
The Annexure referred to in our Independent Auditor''s Report to the members of the company on the financial statements for the year ended 31st March, 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the audit period and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified during the audit period by the management and no material discrepancies were noticed on such verification. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(iii) The Company has not granted any loans, secured or unsecured, to companies/ firms/ other parties covered in the register maintained, on the basis declaration received from the directors in Form MBP-1, under section 189 of the Act.
Accordingly, Sub clauses (a) to (b) of paragraph 3(iii) of the Order are not applicable to the Company.
(iv) The company has not given loans, guarantees and security.
(v) 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 sections 73 to 76 of the Act.
(vi) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub section 1 of section 148 of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.
(vii) (a) During audit procedures we have found that the Company is regular in depositing undisputed statutory dues including Provident fund,
Investor Education and Protection Fund, Employee''s State Insurance, Income Tax, Sales Tax, Service Tax and other material statutory dues applicable to it with the appropriate authorities.
(b) No due of Income Tax/ Sales Tax/ Service Tax/ Custom Duty/ Wealth Tax/ Excise Duty/ Cess are pending on part of the Company on account of any dispute except the following amounts:
S. No. |
Name of the Statute |
Nature of Dues |
Amount (Rs. Lakhs) |
Period to which amount relates |
Forum where dispute is pending |
1 |
Income Tax Act, 1961 |
Penalty u/s 271(1)(c) |
69.10 |
AY 2007 - 08 |
ITAT |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks, Government or debenture holders during the year.
(ix) The Company does not raise any money by way of initial public offer or further public offer (including debt instruments) and terms loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of audit.
(xi) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3 (xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - B to the Independent Auditorâs Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SPL INDUSTRIES LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
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 (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the 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.
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.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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 SINGHI CHUGH & KUMAR
CHARTERED ACCOUNTANTS
FRN: 013613N
Harsh Kumar Partner
M. No. 088123
Place: New Delhi
Date: 27th May 2016
Mar 31, 2015
We have audited the accompanying financial statements of SPL INDUSTRIES
LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, 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 Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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 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.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company''s
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015
(hereinafter referred to as "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, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. the balance sheet, the statement of profit and loss, and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section133 of the Act, read with
Rule7 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.
ii. the Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company, however, there is no amount which is required to be
transferred.
Annexure to the Independent Auditor''s Report
The Annexure referred to in our Independent Auditor''s Report to the
members of the company on the financial statements for the year ended
31st March, 2015, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have been physically verified by the management
during the audit period and no material discrepancies were noticed on
such verification.
(ii) (a) The inventory has been physically verified during the audit
period by the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loans, secured or unsecured,
to companies/ firms/ other parties covered in the register maintained,
on the basis declaration received from the directors in Form MBP-1,
under section 189 of the Act.
(b) Sub clauses (a) to (b) of Clause (iii) of the Order are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets and sale of goods and services.
(v) No deposits have been accepted by the Company from public within
the meaning of sections 73 to 76 of the Act.
(vi) The Central Government, via notification dated December 31,2014,
has amended the Companies (Cost Records and Audit) Rules, 2014 to
exclude companies having annual turnover less than INR 150 crores
during immediately preceding financial year. As regards previous years,
the Company has made and maintained the cost records as prescribed by
the Central Government under section 209(1) (d) of the Companies Act,
1956.
(vii) (a) During audit procedures we have found that the Company is
regular in depositing undisputed statutory dues including Provident
fund, Investor Education and Protection Fund, Employee''s State
Insurance, Income Tax, Sales Tax, Service Tax and other material
statutory dues applicable to it with the appropriate authorities.
(b) No due of Income Tax/ Sales Tax/ Service Tax/ Custom Duty/ Wealth
Tax/ Excise Duty/ Cess are pending on part of the Company on account of
any dispute except the following amounts:
S. Name of the Statute Nature of Dues Amount (Rs. Lakhs)
No.
1 Income Tax Act, 1961 Penalty u/s 271(1)(c) 69.10
2 Income Tax Act, 1961 Penalty u/s 271(1)(c) 11.44
Name of the Statute Period to which Forum where dispute
amount relates is pending
Income Tax act 1961 AY 2007 - 08 CIT (A)
Income Tax Act 1961 AY 2010 - 11 CIT (A)
(c) There is no amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956.
(viii) The accumulated losses of the company exceed fifty percent of
its net worth as at March 31,2015 and it has cash profits & overall
profits in the financial year ended on that date.
(ix) As per information and explanations given to us, the Company has
not defaulted in repayment of dues to a financial institution or bank
or debenture holders.
(x) As per information and explanations given to us, the Company has
not given any guarantee for loans taken by others from bank or
financial institutions.
(xi) According to information and explanations given to us, the Company
has not taken any term loan.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of audit.
For Singhi Chugh & Kumar
Chartered Accountants
Firm''s Registration No. 013613N
Harsh Kumar
New Delhi Partner
Dated: 29.05.2015 M. No. 088123
Mar 31, 2014
1. We have audited the accompanying financial statements of SPL
Industries Limited, which comprise the Balance Sheet as at March 31,
2014; the Statement of Profit and Loss and Cash Flow Statement for the
period then ended, and a summary of significant accounting policies and
other explanatory information.
2. 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.
3. 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 to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness
of the entity''s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion, and to the best of information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
period ended on that date.
5. Report on other legal and regulatory requirements
(i) As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order
(ii) As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, at which the cess is to be paid under section 441A of
the Companies Act, 1956 nor has it issued any Rules under the said
section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
Annexure to the Auditor''s Report
(Referred to in Paragraph 5(i) of the auditor''s report of the even date
for the year ended 31st march, 2014)
Based upon the audit procedures performed for the purpose of reporting
the true and fair view of the financial statements and in terms of the
information and explanations given to us and the books and records
examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As informed to us, physical verification of the fixed assets was
conducted by the management during the year. As per the management 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 the fixed assets of the Company
and the going concern status of the Company is not affected due to
this.
(ii) (a) As explained to us physical verification of inventory was done
on reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification carried
out by the management.
(iii) As per the information and explanation given to us, the company
has not granted / taken any loan, secured or unsecured, to/from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Therefore clause 4(iii)
of the Companies (Auditor''s Report) Order 2003 is not applicable to the
company.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size and nature of its business during the year with regard to
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit we have not observed any major weakness
in such internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, no transaction made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year.
(vi) No deposits have been accepted by the company from public.
Therefore clause 4(vi) of the Companies (Auditor''s Report) Order 2003
is not applicable to the company.
(vii) The company has the internal audit system that commensurate with
the size and nature of the business according to the conditions
stipulated under clause 4(vii) of the Companies (Auditor''s Report)
order, 2003.
(viii) The Central Government of India has not prescribed the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act for any of the products of the Company.
(ix) (a) According to the best of our knowledge and according to the
information and explanations given to us undisputed statutory dues
including provident fund, employee state insurance, income tax, sales
tax, service tax have generally been regularly deposited with
appropriate authorities though there has been slight delay in few
cases.
(b) According to the best of our knowledge and according to the
information and explanation given to us there are no dues of sales tax/
custom duty/ wealth tax/ excise duty / cess/ service tax which have not
been deposited on account of dispute, except are as follows:
S. Name of the Statute Nature of Dues Amount (Rs.
No. Lakhs)
1 Income Tax Act, 1961 Demand u/s 143(3)/147 467.68
2 Income Tax Act, 1961 Penalty u/s 271(1)(c) 69.10
3 Income Tax Act, 1961 penalty u/s 271(1)(c) 11.44
S. Name of the Statute Period to which Forum where dispute
No. amount relates is pending
1 Income Tax Act, 1961 AY 2005 - 06 Pending before CIT(A)
2 Income Tax Act, 1961 AY 2007 - 08 CIT (A)
3 Income Tax Act, 1961 AY 2010 - 11 CIT (A)
(x) The accumulated losses of the Company exceed fifty percent of its
net worth as at March 31, 2014 and it has cash profits & overall
profits in the financial year ended on that date but has incurred cash
losses in the immediately preceding financial year.
(xi) According to information and explanations given to us, the company
has not defaulted in repayment of dues to a financial institution or
bank or debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the company is not a chit fund or a nidhi/ mutual
benefit fund/ society therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
(xv) In our opinion and according to information and explanations given
to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions. Accordingly, the provisions
of clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xvi) The Company has not raised any term loans during the year.
Accordingly, the provisions of Clause 4(xvi) of the Order are not
applicable to the Company.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the company, we report that
the 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 explanation given to us the
company has not issued any debentures.
(xx) To the best of our knowledge and according to information and
explanation given to us, the company has not raised any money by public
issue during the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For Singhi Chugh & Kumar
Chartered Accountants
Firm Registration No. 013613N
Harsh Kumar
Place: New Delhi Partner
Date: 30.05.2014 Membership No. 088123
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying fnancial statements of SPL
Industries Limited, which comprise the Balance Sheet as at March 31,
2013; the Statement of Proft and Loss and Cash Flow Statement for the
period then ended, and a summary of signifcant accounting policies and
other explanatory information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows 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 fnancial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these fnancial
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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the fnancial 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 fnancial statements in to the Company''s
preparation and fair presentation of the fnancial 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
fnancial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
4. Opinion
In our opinion, and to the best of information and according to the
explanations given to us, the fnancial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Proft and Loss, of the loss for the
period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash fows for the
period ended on that date.
5. Report on other legal and regulatory requirements
(i) As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specifed in paragraphs 4 and 5 of the Order
(ii) As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c. the Balance Sheet, Statement of Proft 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 Proft and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. since the Central Government has not issued any notifcation as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, at which the cess is to be paid under section 441A of
the Companies Act, 1956 nor has it issued any Rules under the said
section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
Annexure to the Auditor''s Report
(REFERRED TO IN PARAGRAPH 5(i) OF THE AUDITORS REPORT OF THE EVEN DATE
FOR THE YEAR ENDED 31ST MARCH, 2013)
Based upon the audit procedures performed for the purpose of reporting
the true and fair view of the fnancial statements and in terms of the
information and explanations given to us and the books and records
examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fxed
assets.
(b) As informed to us, physical verifcation of the fxed assets was
conducted by the management during the year. As per the management no
material discrepancies were noticed on such verifcation.
(c) The fxed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fxed assets of the Company and
the going concern status of the Company is not affected due to this.
(ii) (a) As explained to us physical verifcation of inventory was done
on reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verifcation of inventory
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the company has maintained proper records of inventory and no
material discrepancies were noticed on physical verifcation carried out
by the management.
(iii) As per the information and explanation given to us, the company
has not granted any loan, secured or unsecured, to/from companies, frms
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
In respect of loans secured or unsecured, taken by the Company from
Companies, frms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956, according to the
information and explanation given to us:
The Company has taken a short term interest free loan of Rs. 21,247,530
from Companies listed in register maintained under Section 301, other
terms and conditions of such loans are in our opinion is not
prejudicial to the interest of the Company. The nature of loan is short
term and repayment terms of the same are not stipulated.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size and nature of its business during the year with regard to
purchase of inventory and fxed assets and sale of goods and services.
During the course of our audit we have not observed any major weakness
in such internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees fve lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) No deposits have been accepted by the company from public.
Therefore clause 4(vi) of the Companies (Auditor''s Report) Order 2003
is not applicable to the company.
(vii) The company has the internal audit system that commensurate with
the size and nature of the business according to the conditions
stipulated under clause 4(vii) of the Companies (Auditor''s Report)
order, 2003.
(viii) The Central Government of India has not prescribed the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act for any of the products of the Company.
(ix) According to the best of our knowledge and according to the
information and explanations given to us undisputed statutory dues
including provident fund, employee state insurance, income tax, sales
tax, service tax have generally been regularly deposited with
appropriate authorities though there has been slight delay in few
cases.
(x) The accumulated losses of the Company exceed ffty percent of its
net worth as at March 31, 2013 and it has incurred cash losses in the
fnancial year ended on that date and has incurred cash losses in the
immediately preceding fnancial year.
(xi) According to information and explanations given to us, the company
has not defaulted in repayment of dues to a fnancial institution or
bank or debenture holders.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the company is not a chit fund or a nidhi/mutual
beneft fund/ society therefore, the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the company.
(xv) In our opinion and according to information and explanations given
to us, the company has not given any guarantee for loans taken by
others from bank or fnancial institutions. Accordingly, the provisions
of clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the company.
(xvi) The Company has not raised any term loans. Accordingly, the
provisions of Clause 4(xvi) of the Order are not applicable to the
Company.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the company, we report that
the 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 explanation given to us the
company has not issued any debentures.
(xx) To the best of our knowledge and according to information and
explanation given to us, the company has not raised any money by public
issue during the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For SINGHI CHUGH & KUMAR
Firm Registration. No. 013613N
CHARTERED ACCOUNTANTS
Harsh Kumar
Place: New Delhi Partner
Date: 28.05.2013 Membership No. 088123
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s SPL INDUSTRIES
LIMITED as at 31st March, 2012, the Statement of Profit and Loss and
the Cash Flow Statement for the year ending on that date annexed
thereto. These financial statements are the responsibility of company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
financial statements are free from material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that
a. Trade Debtors amounting to Rs. 8,31,00,095/- outstanding for more
than six months and advances to suppliers amounting to Rs.
5,98,49,784/- after making provision for doubtful debts are subject to
confirmation.
b. The working capital and term loan liabilities of the Company from
State Bank of India became NPA on 23rd May 2011 and on 26th December
2011 State Bank of India issued notice under SARAFESI Act for recovery
of amount of Rs. 85,27,33,800. This amount includes Rs. 12,99,34,285 on
account of derivative losses which have not been provided for, as the
Company is disputing the same. The amount claimed by the Bank is fully
covered by the present market value of the collateral security provided
by the Company.
5. Further to our comments in the annexure referred to in paragraph 3
& 4 above, we report that:
a) We have obtained all the information and explanation to the best of
our knowledge and belief that 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 the report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956.
e) On the basis of written representations received from the Directors
as on March 31, 2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of sub -
section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and notes thereon give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. In the case of the Balance Sheet of the state of affairs of the
company as at 31st March, 2012;
ii. In the case of the Statement of Profit and Loss, of the loss for
the year ended on that date.
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure
(REFERRED TO IN PARAGRAPH 3 OF THE REPORT OF THE EVEN DATE FOR THE YEAR
ENDED 31ST MARCH, 2012)
Based upon the audit procedures performed for the purpose of reporting
the true and fair view of the financial statements and in terms of the
information and explanations given to us and the books and records
examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As informed to us, physical verification of the fixed assets was
conducted by the management during the year. As per the management 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 the fixed assets of the Company
and the going concern status of the Company is not affected due to
this.
(ii) (a) As explained to us physical verification of inventory was done
on reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification carried
out by the management.
(iii) As per the information and explanation given to us, the company
has not granted any loan, secured or unsecured, to/from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
In respect of loans secured or unsecured, taken by the Company from
Companies, firms or other parties listed in the Register maintained
under Section 301 of the Companies Act, 1956, according to the
information and explanation given to us:
The Company has taken a short term interest free loan Rs. 2,68,47,529/-
from Companies listed in register maintained under Section 301, other
terms and conditions of such loans are, in our opinion is not
prejudicial to the interest of the Company. The nature of loan is short
term and repayment terms of the same are not stipulated.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size and nature of its business during the year with regard to
purchase of inventory and fixed assets and sale of goods and services.
During the course of our audit we have not observed any major weakness
in such internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of 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 the relevant
time.
(vi) To the best of our knowledge, the company has not accepted any
deposits covered under section 58A and 58AA or any other relevant
provision of the Companies Act, 1956.
(vii) In our opinion and as per information and explanation provided to
us the Company has an inbuilt mechanism of internal audit which as per
the management is commensurate with its size and the nature of its
business.
(viii) In the case of the company maintenance of cost records has not
been prescribed by the Central Government under clause (d) of
sub-section (1) of section 209 of the Act.
(ix) (a) To the best of our knowledge and according to the information
and explanations given to us undisputed statutory dues including
provident fund, employee state insurance, income tax, sales tax,
service tax have generally been regularly deposited with appropriate
authorities though there has been some delay in some cases.
(b) According to information and explanation given to us, no undisputed
amounts payable in respect of income tax, wealth tax, sales tax, custom
duty, excise duty and cess were in arrears, as at 31st March, 2012 for
a period of more than six months from the date they became payable
except as stated hereunder:
Service Tax Liability on rent of Rs. 2,75,000/- per month for the nine
months period April to December, 2011 of Rs. 2,31,120/-. The above
amount with interest was deposited on 24th May, 2012 for a total amount
of Rs. 2,61,147/-.
(d) To the best of our knowledge and according to the information and
explanation given to us there are no dues of sales tax/ custom duty/
wealth tax/ excise duty / cess/ service tax which have not been
deposited on account of any dispute. Disputed statutory dues of Income
Tax, which are pending to be deposited are as under.
S. Name of the Nature of Dues Amount (Rs.
No. Statute Lakhs)
1 Income Tax Act, Tax & interest demand due
to Sec. 80HHC Disallowance. 76.48
1961 Stay of demand granted by
the High Court.
2 Income Tax Act, Tax & interest demand due
to Sec. 80HHC Disallowance. 55.08
1961 Stay of demand granted by
the High Court.
3 Income Tax Act, Penalty u/s 271(1)(c) 37.92
1961
4 Income Tax Act, Penalty u/s 271(1)(c). CIT(A)
dropped the penalty vide 191.33
1961 order dated 18-6-2012.
5 Income Tax Act, Demand Raised u/s 143(3) 23.76
1961
6 Income Tax Act, Penalty u/s 271(1)(c) 69.10
1961
7 Income Tax Act, Tax Demand due to Disallowance
under section 14A 13.56
1961
Name of the Statute Period to which Forum where dispute is
amount relates pending
Income Tax Act,1961 AY 2002 - 03 High Court Chandigarh
Income Tax Act,1961 AY 2003 - 04 High Court Chandigarh
Income Tax Act,1961 AY 2005 - 06 High Court, Delhi
Income Tax Act,1961 AY 2006 - 07 Order of CIT(A) dropping
the penalty received
on 18-6-2012
Income Tax Act,1961 AY 2006 - 07 ITAT
Income Tax Act,1961 AY 2007 - 08 CIT (A)
Income Tax Act,1961 AY 2008 - 09 ITAT, Delhi
(x) The company has incurred cash losses during the financial year
covered by our Audit and in the immediately preceding financial year.
Its accumulated losses at the end of the current financial year exceed
fifty percent of its net worth.
(xi) The company had defaulted in repayment of dues to the bank (State
Bank of India) as stated in the Balance Sheet and the Auditors' Report.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the company is not a chit fund or a nidhi/ mutual
benefit fund/ society therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
(xiv) In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) In our opinion and according to information and explanations given
to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions. Accordingly, the provisions
of clause 4(xv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
(xvi) To the best of our knowledge and according to the information and
explanations given to us, the term loans were applied for the purpose
for which the loans were obtained.
(xvii)According to the information and explanations given to us and on
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(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 explanation given to us the
company has not issued any debentures.
(xx) To the best of our knowledge and according to information and
explanation given to us, the company has not raised any money by public
issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the year.
for SINGHI CHUGH & KUMAR
Chartered Accountants
(Harsh Kumar)
Partner
Place: New Delhi M.No. 88123
Date: 28.07.2012 Firm Regn. No. 013613N
Mar 31, 2010
We have audited the attached Balance Sheet of SPL INDUSTRIES LIMITED as
on 31st March, 2010 and also the Profit & Loss Account and the Cash
Flow Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditorsà Report) Order, 2003, issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2. The turnover of the Company has reduced to Rs 281.6 crores for the
year ended 31st March 2010 from Rs. 369.06 crores for the year ended as
on 31st March 2009.The Company has suffered loss after tax of Rs 36.74
crores for the year ended 31st March 2010 as against loss after tax of
Rs. 14.35 crores for the year ended 31st March 2009. During the year
the company has permanently closed down its one unit and the other one
unit has remained partly closed during the year. The results for the
year have been prepared on Going Concern basis.
3. Attention is invited to the following:- Export incentive
recoverable, amounting to Rs.349.20 lacs included in ÃLoans & AdvanceÃ,
have not been approved by the concerned authorities. Provision for the
same is not considered by the management.
4. Impairment loss had not been worked out / provided in the books for
the assets of unit closed down during the year, which constitute a
departure from the Accounting Standard à 28 on ÃImpairment of AssetsÃ
as notifi ed in Companies (Accounting Standard) Rules, 2006. The amount
of impairment loss is not ascertained.
5. Further to our comments in the Annexure referred to in paragraph
(1) to(3) above and subject to our observation in paragraph (4) above
we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account, as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion the Balance Sheet, Profit & Loss Account and the Cash
Flow Statement dealt with by the report comply with the requirements of
Accounting Standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956;
e) On the basis of the written representations received from the
Directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of Sub-section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2010;
ii) in the case of the Profit and Loss Account, of the loss of the
company for the year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flow of the
Company for the year ended on that date.
ANNEXURE (Referred to in paragraph 1 of our report of even date)
i) a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) In our opinion the fixed assets covering significant value have been
physically verified by the management during the year at reasonable
intervals and having regard to the size of the company and the nature
of its fixed assets and on the basis of the information and
explanations given by the management, no material discrepancies have
been noticed on such verification.
c) No substantial part of fixed assets has been disposed off during the
year except the Plant & Machinery of the unit closed during the year,
however, it has not effected the going concern.
ii) a) As per information & explanation given to us, the inventory of
the Company in its possession has been physically verified by the
Management at reasonable intervals. Stocks in the possession and
custody of the third parties and stocks in transit as on 31st March
2010 have been verified by the Management with regard to confirmation
or statement of account or correspondence of the third parties or
subsequent receipt of goods.
b) The procedure of physical verification of inventory of the Company
followed by the Management is 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 explained
to us, no material discrepancies were noticed on such physical
verification as compared to book records.
iii) As per information & explanation given to us, the company has not
taken any loan, secured or unsecured, from companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
iv) As per information & explanation given to us, the company has not
granted or taken any loan, secured or unsecured to/from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956, during the current financial year.
v) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods. During the course of our Audit, no major weakness has been
noticed in the internal controls.
vi) In respect of transactions covered under section 301 of the
Companies Act, 1956:- a) In our opinion and according to the
information and explanations given to us, the transactions made in
pursuance of contracts or arrangements, that needed to be entered in
the register maintained u/s 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 have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant times.
vii) To the best of our knowledge, the company has not accepted any
deposits covered under section 58A and 58AA or any other relevant
provision of the Companies Act, 1956.
viii) To the best of our knowledge and explanations given to us, the
Company has an internal audit system commensurate with its size and the
nature of its business.
ix) To the best of our knowledge, the Central Government has not
prescribed the maintenance of any cost records under Section 209 (1)
(d) of the Companies Act, 1956, for the product manufactured by the
company.
x) a) To the best of our knowledge and according to the information and
explanations given to us the Company is generally regular, except delay
in certain cases , in depositing undisputed statutory dues including
Provident Fund, Investors Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Cess, Service Tax and any other statutory dues applicable to it
with the appropriate authorities.
b) According to information and explanations given to us, there were no
arrears of outstanding Income Tax, Wealth Tax, Sale Tax, Service Tax,
Cess, Custom Duty, Excise Duty and any other statutory dues as at
31.03.2010 for a period of more than six months from the date they
became payable.
c) To the best of our knowledge and according to information and
explanation given to us there are no dues of sales tax / custom duty /
wealth tax / excise duty / cess / service tax/ income tax which have
not been deposited on account of any dispute except in the following
cases: -
Name of the Nature of Amount Period to Forum where
Statute the Dues (Rs. In Lacs) which amount dispute is
related pending
1 2 3 4 5
Income Tax
Act, 1961 Disallowance 151.22 F/Y 2006-2007 Commissioner
(Appeals)
Disallowance 1.44 F/Y 2004-2005 Commissioner
(Appeals)
Disallowance 210.02 F/Y 2005-2006 Commissioner
(Appeals)
80 HHC
Disallowance 55.68 F/Y 2001-2002 High Court
Haryana
Sale Tax
Act & Additional
demand 53.98 * F/Y 2000-2001 Tribunal
Central
Sale Tax against sale of
DEPB License 17.85 * F/Y 1999-2000 Tribunal
EPF and
MP Act Additional
Demand 5.51 Oct 1995-Sept
1997 Tribunal
ESI Act ,
1948 Additional
Demand 9.81 F/Y 2002-2003 Civil Court
*excluding Rs. 20 Lacs paid under protest.
xi) The Company has incurred cash losses during the financial year
covered by our Audit and in the immediate preceding financial year
however it has no accumulated losses at the end of the current
financial year.
xii) In our opinion, the company has not defaulted in repayment of dues
to Financial Institutions or Banks.
xiii) On the basis of verification of accounts and records maintained
by the Company and to the best of our knowledge & belief, the Company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
xiv) The Company is not a chit fund or nidhi / mutual benefit fund /
society. Therefore the provision of clause 4(xiii) of the Companies
(AuditorÃs Report) Order, 2003 is not applicable to the company.
xv) To the best of our knowledge and according to information given to
us, the Company is not dealing or trading in shares, securities and
debentures.
xvi) To the best of our knowledge and according to the information and
explanation given to us, the Company has not given any guarantee for
loans taken by others from Banks/ Financial Institutions.
xvii) To the best of our knowledge and according to the information and
explanations given to us, the term loans were applied for the purpose
for which the loans were obtained.
xviii) According to the Cash Flow Statement and other records examined
by us and information & explanations given to us, on an overall basis,
funds raised on short term basis have, prima facie, not been used
during the year for long term investments.
xix) According to the information & explanations given to us, 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.
xx) According to the information & explanations given to us the Company
has not issued any debenture during the year.
xxi) To the best of our knowledge and according to information and
explanation given to us, the company has not raised and money by public
issue during the year.
xxii) Based upon the audit procedure performed and information and
explanation given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
FOR MEHRA GOEL & CO.
Chartered Accountant
Place : New Delhi R.K. MEHRA
Dated: MAY 29, 2010 PARTNER
M. No.: 6102
FRN : 000517N
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